Shivaji
took over the charge of Pune after Dadojis death in 1647. The city then was
successfully invaded and captured by at least two Mughal officials, Shahista Khan and
Mirza Raja Jai Singh, despite Shivajis presence. During his stay in Pune, Shaista
Khan founded the Mangalwar Peth (1622) and also made the city
his military headquarters. The city of Pune was almost forgotten after Shivaji shifted his
headquarters to fort Raigad in 1674.

After
Shivajis death in 1680, the administration of the city passed on to Mughals. Emperor
Aurangazeb, who descended on Deccan, to check the Maratha power which resulted in an
indecisive war, spanning over two long decades, was camping in Pune during the monsoons of
1703 after capturing the Sinhagad fort. The Emperor named his
Pune settlement Muhiyabad, in the memory of one of his grandsons who died here 1690,
which came to be known as Budhwar Peth in the latter day Pune.

Dhanaji
Jadhav, a virile general of Queen Tarabai wrested the control of Pune from the Mughals
after the death of Aurangazeb. Available documents show that Balaji Vishwanath, who became
the first Peshwa (Prime Minister) of the Maratha Empire, was the subhedar of
the Pune prant (district), in 1699 while the city was still under dual control -
both Marathas and Mughals. Balaji Vishwanath died in 1721, and was succeded by his son -
Peshwa Bajirao I, who ruled the Maratha empire for about two decades. Peshwa Bajirao I
chose Pune to be the capital of the then mighty Maratha Empire. This was the period when
the seeds of Pune being destined to occupy a proud position as the central stage of
socio-political activities in the country during the later half of 18th century
were sown.

Bapuji
Shripat, a general of Bajirao I persuaded many rich trading families to settle in Pune who
were given lands by razing the old city wall, along the river bank in 1728. The city then
was divided in as many as 18 peths (burrows).

Peshwa
Bajirao I constructed the splendid Shaniwar Wada (1729-1736),
built Omkareshwar and Amruteshwar temples. Balaji, son of Bajirao, built the
Parvati lake and the temple. The city expanded with Nageshwar temple and
Tulshi Baug (Tulshi garden). Raviwar Peth, too, was
founded during this period by Mahajan Vevhare Joshi. Guruwar,Sadashiv
and Shaniwar Peths and a few gardens were also
built during this period (1740-1761). In 1764 the Kotwali, corresponding to modern
day police, was established in Pune.

The
Maratha power sustained a mortal defeat at Panipat, in 1761. Peshwa Balaji died of severe
shock and was succeeded by son Madhavrao. The dissension at the Maratha court invited
Nizam Ali of Hyderabad to invade Pune. Under the Nizam's aggressive rule, the city was
plundered and ransacked. The people of the city fled unable to bear the Nizams
attrocities. Vital State offices and the treasury were shifted to Sinhagad.

However,
within a decade, Madhavrao was able to restored the lost glory of Pune. The Somwar
Peth was built at this time. Madhavrao also had proposed to wall the city,
but the plan was opposed by Maratha king Chhatrapati Shahu.

Madhavraos death
heralded the begining of internal strife in the Peshwa family, which culminated in tragic
murder of the young Peshwa Narayanrao. The last two decades of 18th century
witnessed rise of Nana Phadanavis, who ably governed the realm as the regent of the young
Peshwa Sawai Madhavrao. Nana Peth was founded by Nana Phadanavis
for wholesale grain merchants in 1791. Ganesh Peth, Narayan Peth
and Bhavani Peth were also founded in the last decade of 18th
century.

The death of Madhavrao
was the signal for the collapse of the Peshwa power. The four powerful commanders of the
Peshwas - Scindias, Holkars, Gaikwads and Bhosles, gained enough power to
destabilise the Peshwa domination. In 1802, Yashwantrao Holkar signed the treaty of Bassin
with the British, on behalf of Bajirao II and thereafter, the Marathas came under the
British power.

The last Anglo-Maratha
war saw the defeat and deposition of Peshwa Bajirao II. The decisive battle of Kirkee
was fought on the plains of Bhamburda and Pune came under the British rule.